Tony Blair’s think tank wants the UK to start charging drivers based on how many miles they drive
Tony Blair’s think tank says it’s time to start a pay-per-mile road pricing system. They are asking the chancellor to change how driving taxes work.
Rachel Reeves is expected to announce the end of a temporary 5p cut in fuel duty and possibly increase taxes on petrol and diesel in her budget next Wednesday.
Instead of going back to the old fuel duty rates, the Tony Blair Institute suggests that Reeves should set up a simple road pricing system. This would charge 1p per mile for cars and vans, and between 2.5p and 4p for lorries and heavy trucks.
A new report from the institute claims that this change would bring in the same amount of money from drivers as the government expects to gain by ending the temporary fuel duty cut from 2022. They believe acting now would be less politically risky than waiting later.
In 2007, the Blair government tried to set up road tolls across the country, but many people were very unhappy, and a record number signed a petition against it.
Now, with more people switching to electric cars, there’s less money coming from fuel taxes, which usually brings in about £25 billion each year. This has led to renewed discussions about changing the tax system for driving.
An organization has suggested that introducing a low-level road pricing system would be an important step in updating the UK’s driving taxes for electric vehicles. This could help reduce traffic congestion that slows down growth.
They estimate that drivers would pay about £70 a year, based on how many miles they drive, using readings from their car’s odometer taken during their yearly MOT check.
Fuel taxes won’t be eliminated but will be kept at the same rate for now, eventually becoming unnecessary as more cars become zero-emission. By 2050, they predict the cost per mile could be around 10-12 pence.
There has been a lot of talk about these changes, especially after Sir John Armitt, head of the National Infrastructure Commission, said road pricing is “inevitable.” Groups like the Campaign for Better Transport are also calling for pay-per-mile charges for electric vehicles.
Reeves has said that the country has a £22 billion gap in its finances. The Tony Blair Institute has also asked her to change the financial rules to allow for more investment and to update stamp duty, while increasing council tax on expensive houses.
A government spokesperson said, “We do not plan to introduce road pricing. We are focused on helping our car industry as we move to electric vehicles to meet our climate goals.”
Published: 24th October 2024
Also Read:
Trinny and Susannah’s daughters say pair ‘would be cancelled’ if show made now
A UK watchdog is questioning 20 social media “finfluencers” while warning them about the seriousness of the situation
VW has been fined £5.4 million for treating vulnerable car finance customers in the UK badly
